PETALING JAYA: Unisem (M) Bhd is in a strong position to fully tap the proliferation of 5G and the Internet-of-things.
This is given the upbeat outlook for semiconductor applications and consumption as well as the revamp in the group’s operation, according to MIDF Research.
The research house also opined that Unisem’s strategic relationship with Tianshui Huatian Technology Co Ltd (TSHT) will further boost its operation expansion given TSHT’s significant presence in China’s semiconductor industry, alongside with TSHT’s existing resources and technology.
Unisem is expected to further expand its customer base in correlation to its Chengdu’s plant expansion plan in China.
MIDF Research said: “Unisem has made a strong comeback this year as seen in its first half ended June 30, 2021 (H1FY21) financial performance.”
The research unit is also positive on Unisem’s bonus issue exercise as it improves trading liquidity.
Unisem’s share price went ex-bonus issue on Oct 6, following the issuance of 806.5 million bonus shares.
Unisem had announced the one-for-one bonus issue of shares in September, mainly to reward its existing shareholders.
MIDF Research maintained its “buy” call on Unisem’s stock with an ex-bonus target price of RM5, pegging on FY22 estimated earnings per share of 18.2 sen against price-earnings ratio of 27.4 times.
“This is premised on strong demand across products and services especially on wafer level packaging and micro-electro-mechanical systems bump,” said the research house.